factual

For Delta Hotels By Marriott, what is an 'Applicant Entity' as it relates to Form 3?

Delta_Hotels_By_Marriott Franchise · 2025 FDD

Answer from 2025 FDD Document

Form 3 must be completed for each franchisee of each hotel that is the subject of the Application and, if different, each owner of each hotel (or the land upon which the hotel is built) that is the subject of the Application (each, an "Applicant Entity"). Please provide the information and documents required in Form 3.

Source: Item 23 — RECEIPTS (FDD pages 134–251)

What This Means (2025 FDD)

According to the 2025 FDD, when applying for a Delta Hotels By Marriott franchise, an 'Applicant Entity' refers to each franchisee of each hotel that is the subject of the Application and, if different, each owner of each hotel (or the land upon which the hotel is built) that is the subject of the Application. This definition is specifically relevant when completing Form 3, titled "Ownership Structure and Due Diligence." The form requires information and documents for each Applicant Entity.

In practical terms, this means that if you are applying to franchise a Delta Hotels By Marriott and you also own the hotel building or the land it's on, you must provide detailed information about both your franchise entity and your ownership entity. This ensures Delta Hotels By Marriott has a complete understanding of the ownership and control structure of each hotel.

Delta Hotels By Marriott also requires that the formation document for the Applicant Entity be included (e.g. Articles of Organization or Certificate of Formation for an LLC; Articles or Certificate of Incorporation for a corporation; Certificate of Limited Partnership for an LP). At a minimum, any individual, group of individuals, or entity that collectively, directly or indirectly, "controls" Applicant Entity, or owns 25% or more of the Applicant Entity must be included. If no individual, group of individuals, or entity owns 25% or more, or if you are unsure, list all individuals or entities with a direct or indirect ownership interest in Applicant Entity. The ownership percentage for each individual or entity must also be included. If the ownership structure includes multiple entities and you are unsure of the indirect ownership percentages of the Applicant Entity, provide a breakdown of their ownership below the Applicant Entity as needed to reflect cumulative ownership or attach an organizational chart that illustrates the full ownership structure.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.